01777nam a2200169Ia 450000500170000000800410001724501000005824000250015810000070018310000060019070000130019670000090020911000120021826000170023025001210024730012390036820260803094231.0251212s9999    xx            000 0 und d1 aA Theory of customer valuation : bconcepts, metrics, strategy, and implementation /cV. Kumar.1 aJournal of Marketing  a82  d1  a1/3/20180 a1-19  aArticle  aEnglish :b,  acustomer valuation theory ; customer lifetime value ; customer engagement ; customer profitability ; stock valuation  aCustomer valuation refers to the economic value of the customer`s relationship with the firm. This study approaches the topic of customer value for measuring, managing, and maximizing customer contributions by proposing a customer valuation theory (CVT) based on economic principles that conceptualizes the generation of value from customers to firm. The author reviews the established economic theories for valuing investor assets (e.g., stocks) and draws ac comparison to valuing customer contributions. Furthermore, the author recognizes the differences in the guiding principles between valuing stocks and valuing customers ing proposing CVT. Using CVT, the author discusses the concept of customer lifetime value (CLV) as the metric that can provide a reliable, forward-looking estimate of direct customer value. In addition, economic models to estimate CLV, ways to manage CLV using portfolio management principles, and strategies to maximize CLV are discussed in detail. The author extends the customer value concept by discussing ways that a customer can add value to the firm indirectly through incentivized referrals, social media influence, and feedback. Finally, the benefits of CVT to multiple constituencies are offered.